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Canada's Chartered Accountants call for further action on corporate taxes

OTTAWA, Nov. 28 /CNW/ - Canada's Chartered Accountants today urged the
House of Commons Standing Committee on Finance to push for a simplified tax
system - one that brings the corporate tax rate down to the small business
level.
"While the tax reductions outlined in last month's economic statement are
very encouraging, we'd like to see faster action aimed at moving the corporate
tax rate in line with the lower small business rate," said Kevin Dancey, FCA,
President and CEO of the Canadian Institute of Chartered Accountants (CICA).
"Many countries around the world, on all sides of the political spectrum, are
coming to this realization and aggressively reducing corporate taxes. Canada
cannot be left behind."
A single rate would bring much-needed simplification to the tax system by
eliminating the rules currently needed to differentiate between large and
small business income. In doing so, it would lower compliance costs and
further enhance business prosperity.
Appearing before the finance committee, Dancey also called on the federal
government to renew its efforts to make sales tax harmonization a reality
across Canada, and to continually monitor capital cost allowance rates so that
they correspond to the economic life of the asset - as measures that would
substantially improve Canada's business tax competitiveness.
"The combination of lower corporate taxes, sales tax harmonization and
appropriate CCA rates would greatly assist Canadian businesses in dealing with
a stronger Canadian dollar," said Dancey. "It would also directly incent
businesses to grow in Canada - to become global champions with their head
offices right here in Canada."
The CICA's pre-budget submission also focuses on the federal debt, noting
that interest payments cost the government nearly $34 billion every year.
"Based on the government's own estimates, we will not see an appreciable
reduction in these yearly payments over the next five years," said Dancey. "As
such, we're calling on the government to accelerate the pace of future debt
reduction so that the debt-to-GDP ratio is reduced to 20 per cent by or before
the 2013/2014 fiscal year."
The Canadian Institute of Chartered Accountants (CICA), together with the
provincial, territorial and Bermuda Institutes/Ordre of Chartered Accountants,
represents a membership of approximately 72,000 CAs and 10,000 students in
Canada and Bermuda. The CICA conducts research into current business issues
and supports the setting of accounting, auditing and assurance standards for
business, not-for-profit organizations and government. It issues guidance on
control and governance, publishes professional literature, develops continuing
education programs and represents the CA profession nationally and
internationally. CICA is a founding member of the International Federation of
Accountants (IFAC) and the Global Accounting Alliance (GAA).